2007 Preliminary Town Budget Would Increase Taxes 5.3%

by Harriet Kline

(December 7, 2006) At a public hearing on Wednesday, December 6, Mamaroneck Town Administrator Steve Altieri presented the preliminary 2007 Town budget, which calls for an increase in expenditures of $1,160,545 or 4.4% increase over the 2006 budget. The Board vote on the final budget will take place on December 20, 2006.

The proposed budget would raise tax rates 5.3% for residents of the unincorporated areas of Mamaroneck Town. This compares to a 4.5% hike in 2006. (See: 2006 Budget.)The 2007 budget’s impact on the tax rates of Village of Larchmont and Mamaroneck residents will be minimal (up $.20) as they receive only a few services (recreation, election, assessment and ambulance) from the Town.

About a dozen residents were in attendance at the public meeting to address the condition of the roads on East and West Brookside. They expressed deep frustration when informed by Mr. Altieri that funds in the 2007 budget allow for the resurfacing of only one side of the Brook. The other side would have to wait till 2008. Supervisor Valerie O’Keeffe indicated that to complete both sides in 2007 would have necessitated an overall tax increase of 6.3% rather than the 5.3% proposed in the preliminary budget.

Which Expenses Are Rising?

Mr. Altieri cited several reasons for the increase in Town expenses for next year: employee salaries and health benefits; significant rise in energy costs; debt expenses and capital projects.

Total salary expenditures for the coming year are estimated to be $10.5 million, an increase of $236,000 or 2.3%. The collective bargaining agreement between the Town and the police officers will expire December 31, 2006. The Town is continuing to negotiate with clerical and highway employees for a renewal of their agreement, which expired December 31, 2005. The preliminary budget includes two new full time positions – an additional laborer in the Town Highway Department and a new employee in the Recreation and Community Services Departments. The latter position is a “joint venture” with the Village of Larchmont which will take on 40% of the cost.

Employee benefit costs in 2007 are expected to rise by $239,000 to $5.5 million. Seventy-five percent of that is attributable to the cost of medical insurance. (According to the Centers for Medicare and Medicaid Services, the NY State area pays 26% more for heathcare than the rest of the nation.)

The capital project that the Town will focus on in 2007 is the New York State mandated construction of the water filtration plant by the Westchester Joint Water Works (comprised of the Towns of Harrison and Mamaroneck and the Village of Mamaroneck).

The Town’s share of the project is $12 million.. It is anticipated that a good portion of the debt to be incurred for the water the plant will have to be financed through a combination of property taxes and a water rate increase. The specifics on the financing, Mr. Altieri said, will be discussed at the December 20 public meeting. However, it is anticipated that the major impact of the project will not be felt until 2008 and 2009.

Where Is the Money Coming From?

The Town is mandated by New York State to present a balanced budget. The preliminary budget indicates that the three sources of revenue to offset proposed spending are: (1) property taxes of $17,786,085, which represent 65% of the budget;(2) non-property tax revenue (mortgage tax and sales tax revenues, charges and fees), which are expected to amount to $7.7 million; and (3) reserve funds of $1,893,000.

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